Can someone inform the community why VST Industries’ management does not conduct conference calls? Are they unwilling to engage directly with investors and address their queries? Is there a specific reason behind this approach? Even companies with significantly lower market capitalization — including several SMEs — regularly hold such interactions. Would appreciate any insights or thoughts on this.
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- The downward trend in the last two quarters seems to be mainly due to the transfer of their manufacturing facility from Azamabad to the Toopran unit.
- The transfer was completed only in the last quarter.
- In the 2024-25 financial year, they have listed the Azamabad property for sale.
- As of now, the property has not been sold.
- No commentary or update regarding the sale was mentioned in the latest quarterly results.
- Does anyone have any further information or insights on this?
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Mean reversion happening in tobacco prices as expected within this year things should normalize. This may impact top line growth as unmanufactured leaf exports slows but i think along with paper and tobacco input prices softening there can be margin expansion as compared to contraction witnessed. However this depends on performance and spends on new geography and new products VST introduced along with the execution in terms of utilization rate of new manufacturing capacity.
Disc: Biased and Invested recently added some more to my existing position.
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ap_stat.pdf (41.0 KB)
kk_Stat.pdf (54.0 KB)
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Anyone attended the AGM? Can maybe share their notes or 2 cents on it?
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Chairman said, their last couple of years of work is bearing fruits and the volume increase in the Q1FY26 is showing it. As last year AGM they re-iterated that due to consumers shifted from below 10rs cigars to 10rs cigars, which was not their core strength, they lost market share and other companies who were already in that category gained market share.
He said, its not easy to grab market share from the big deep pocketed leader. But they are putting all efforts, launched new products in the 10rs category. Testing 4-5 products each in different areas of India in trail and error method.
They are in search of a very suitable person for CEO post, not hurrying to fill with some or the other, knowing the importance of that post.
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Spent some time over the weekend reviewing VST Industries Limited’s Q2 FY26 performance. A few positives stood out:
- Net profit margin improved YoY to 17% from 13%, marking a strong margin expansion despite challenging market conditions.
- However, sales growth YoY showed a decline of 7%, indicating volume or pricing pressures still remain.
This mixed result highlights that while profitability metrics are improving, driven by better cost control and premium focus, top-line growth remains an area to watch closely in the coming quarters.
Would be interesting to see how management’s strategies will tackle the sales growth headwinds moving forward.
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When will they appoint a new CEO and who will it be. What is the present progress in this matter. These are unanswered and unknown to public questions.
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1. CEO Appointment Timeline
When does the company expect to appoint the new CEO, and what is the current status of the selection process?
2. Asset Held for Sale – Status
The balance sheet shows an asset held for sale valued at approximately ₹300 crores, which has remained unsold for over a year. What are the reasons for the delay in completing this sale?
3. Sale Timeline and Utilisation of Proceeds
By when does the management expect the sale to be completed? Additionally, does the company intend to distribute any part of the sale proceeds to shareholders, or how does the management plan to utilize these funds?
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This typically shouldn’t happen. Ind AS -105 requires that in order to classify a non current asset as held for sale, the asset must expectedly be sold within one year from the date of classification. The only exception is because of delays beyond the control of the entity.
Else they should have re-classified it as a Non Current Asset
It has now been almost a year, yet the company has not reclassified the Asset Held for Sale, even though it continues to appear in the half-year balance sheet. As per accounting norms,the asset should typically be reclassified.
What could be the possible reasons for keeping it classified as “held for sale” for such a long time? Can anyone shed some light on this?
Anyone knows the estimated market value of their old factory in Sikunderabad (Hyderabad) which is held for sale?
Assets held for sale are shown at Fair Value less cost to Sale at the end of reporting period.
So what you are seeing on the balance sheet IS the market value
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the company still believes that it will successfully dispose of the assets in next on year hence it is classified as held for sale even after expiry of one year.
results to be announce today anyone still tracking this compnay? will there be any announcement of held for sale property which was available on balance sheet
They can give a good one dividend if the property is sold
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vst 2026.pdf (6.9 MB)
one of the best quater in the company history 12 rs dividend declare
but still the held for sale property is on balance sheet from last to 2 years.
anyone have any idea what rules says?
company is availabe at a pe of just 16 one of the most undervalued stock in the segment its 3rd lagerst manufacturer of cigarrete in india.
Dislosure: Invested for a 2x
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